China Automotive Parts Aluminum Die Casting Market Size, Share & Trends Analysis Report By Production Process (Pressure Die Casting, Vacuum Die Casting, Squeeze Die Casting, Gravity Die Casting), By Vehicle Type (Internal Combustion Engine Vehicles (ICEV), Electric Vehicles), By Sales Channel (Original Equipment Manufacturers (OEMs), Aftermarket), By Application (Engine Parts, Transmission Part, Suspension Components, Battery and related components, Others) and Forecasts, 2025-2033

China Automotive Parts Aluminum Die Casting Market

The China automotive parts aluminum die casting market size was valued at USD 8.87 billion in 2024 and is estimated to reach from USD 9.58 billion in 2025 to USD 17.87 billion by 2033, growing at a CAGR of 8.1% during the forecast period (2025–2033). China holds a dominant position in the global automotive industry, both as the largest producer and consumer of vehicles. The regional market has experienced rapid growth, driven by the country's emphasis on fuel-efficient and environmentally friendly vehicles. Additionally, with the surging production of electric vehicles (EVs) and the push towards reducing vehicle weight, the demand for aluminum die-cast parts is rising significantly in China.

Market Growth Factor

Government push for new energy vehicles (NEVs)

The Chinese government's aggressive push for New Energy Vehicles (NEVs), including electric and hybrid vehicles, is a major driver of the China automotive parts aluminum die casting market. Under China's New Energy Vehicle Industry Development Plan (2021–2035), the government aims to increase NEV sales to account for 20% of total vehicle sales by 2025. As lightweight materials like aluminum are essential for extending the driving range and improving the energy efficiency of NEVs, the demand for aluminum die-cast components has increased sharply.

Furthermore, government subsidies and favorable policies such as tax exemptions for NEV buyers and manufacturers have bolstered the production and adoption of electric vehicles, driving the need for aluminum parts. The Ministry of Industry and Information Technology (MIIT) estimates that China's NEV sales will reach over 6.5 million units in 2022, up 60% from the previous year, providing a robust foundation for the growth of this market.

Market Restraint

High initial investment and technological barriers

While China's regional market is growing, it faces the challenge of high initial capital investment and technological barriers. The die casting process requires significant upfront costs for machinery, molds, and technology development, which can be a deterrent for smaller and mid-sized manufacturers.

In addition, the complexity of this casting technology, particularly for advanced automotive parts like engine components and structural frames, necessitates skilled labor and technical expertise, which is often in short supply in the market. Despite the growing demand for aluminum die-cast parts, manufacturers must invest heavily in R&D to keep up with global quality standards and ensure cost-effectiveness in production. For smaller companies, these high initial costs can hinder entry into this sector, slowing overall market growth.

Market Opportunity

Focus on lightweight vehicles to meet carbon neutrality goals

China's commitment to achieving carbon neutrality by 2060 presents significant opportunities for market growth, particularly in the automotive sector. As part of its broader environmental goals, the Chinese government is enforcing stricter fuel efficiency standards, encouraging automakers to reduce vehicle weight and improve fuel economy. Aluminum, with its high strength-to-weight ratio, is increasingly being used in the production of lightweight vehicles, which are more energy-efficient and generate fewer emissions.

Additionally, the surge in electric vehicle (EV) production, driven by government mandates and subsidies, has further boosted the demand for aluminum die-cast components, which are critical for reducing the overall weight of EVs and enhancing battery efficiency. As China accelerates its transition toward greener transportation, this industry is poised to capitalize on the growing need for lightweight, sustainable automotive solutions.

China Automotive Parts Aluminum Die Casting Market Regional Insights

China is the largest player in the Asia-Pacific market. In 2022, China produced over 26 million vehicles, accounting for more than 30% of global vehicle production (OICA). Additionally, China leads the global electric vehicle (EV) market, with 6.5 million electric vehicles sold in 2022, a 60% increase compared to the previous year, as per the IEA. Furthermore, China automotive parts aluminum die casting market is largely concentrated in industrial hubs like Guangdong, Zhejiang, and Shanghai, where the country's major automotive manufacturers are based. These regions have well-established automotive supply chains and advanced infrastructure, making them key players in this market.

Guangdong, home to leading automakers like BYD and GAC, is a prominent region in NEV production, driving the demand for aluminum die-cast components. Similarly, Zhejiang and Shanghai, with their proximity to major ports and established manufacturing bases, play critical roles in producing aluminum automotive parts for both domestic and export markets. According to CAAM, these regions collectively account for over 50% of China's total vehicle production. Moreover, local governments in these provinces offer favorable policies, such as subsidies and tax breaks for manufacturers investing in lightweight materials and environmentally friendly technologies. As the Chinese automotive industry continues to evolve with a focus on sustainability and innovation, these regions will remain pivotal in driving the growth of the regional market.

Segmental Analysis

By Vehicle Type

ICE dominates the vehicle type segment and is expected to augment at a CAGR of 6.4%. The internal combustion engine (ICE) vehicle segment continues to expand in China due to the large existing fleet and the ongoing demand for fuel-efficient cars. Although electric vehicles (EVs) are growing rapidly, ICE vehicles still dominate the market, especially in rural areas and regions with limited EV infrastructure. To meet stringent fuel efficiency regulations, automakers are increasingly adopting this casting technology for ICE vehicle components, promoting growth in this segment.

By Sales Channel

Original Equipment Manufacturers (OEMs) dominate the sales channel segment and are estimated to grow at a CAGR of 8.7%. The OEM sales channel in China's market is growing due to the strong presence of domestic automakers like BYD, Geely, and SAIC. These manufacturers prefer in-house production or partnering with local suppliers for aluminum die-cast parts to ensure quality control, cost-efficiency, and compliance with national fuel efficiency standards. Additionally, the surging demand for electric vehicles (EVs) has further propelled OEMs' reliance on this casting technique.

By Application

Engine parts is estimated to own the application segment and is anticipated to expand at a CAGR of 7.3%. The engine parts segment is experiencing significant growth in the regional market owing to the increasing demand for lightweight and fuel-efficient vehicles. Aluminum is widely used in engine components, such as cylinder heads and engine blocks, to reduce vehicle weight and improve fuel efficiency. The rise of hybrid vehicles and the focus on improving internal combustion engine (ICE) performance is also driving the demand for aluminum die-cast engine parts.

Analyst's Perspective

As per our research analysts, the China automotive parts aluminum die casting market is expected to experience robust growth over the next decade. The ongoing shift towards electric mobility, coupled with the push for lightweight and eco-friendly vehicles, will be the key drivers for demand. Additionally, to maintain a competitive edge, companies operating in this space should focus on leveraging the latest technologies in die casting, increasing production efficiency, and aligning with the country's sustainability goals. Collaborations between automotive OEMs and aluminum die casting manufacturers will be critical in developing innovative solutions that meet the future needs of the automotive industry.